Sometime in the next couple of months, if not already, most of you will be receiving notices that your healthcare premiums are going up or your policy has been cancelled – again. From everything I’ve been reading and posting, I strongly recommend that you sit down before opening your notice because the sticker shock may take the legs right out from under you.
I hope you’re still sitting down because the increased premiums you just read may not reflect an added increased that will most likely result in your premiums increasing even more. In fact, according to one actuary, your premium will significantly increase even more.
Starting tomorrow, September 1, 2015, a new Affordable Care Act tax will be implemented. It’s not directed at you personally, but at the companies that provide your health insurance policies to tune of $8 billion a year and increasing to $14 billion a year by 2018.
Any policy plan reaping $25 million in premiums or more will be informed, starting today, how much of the $8 billion tax they have to pay. While that may sound like a lot it’s really not. If the average policy only cost $250 a month that adds up to $3,000 a year, meaning that the company would only need about 8,300 policy holders. But don’t forget that many people are paying a lot more than $250 a month reducing the number of policy holders necessary to put them into the tax bracket.
And how do you think the insurance companies are going to paying their millions of dollars in new taxes? Yep, increases in premiums. One actuary estimated that individual premiums could increase as much as $500 a year ($41.67 a month) and family policies could see a $700 a year increase ($58.33 a month).
This new increase will be added onto the double digit increase already on the way to your mailbox. I seriously doubt if many of you will be receiving a $100-$200 a month raise in income to help pay for the increased cost of AFFORDABLE health care.
Lastly, don’t forget that the new Obamacare tax will continue to increase every year for the next 3 years, guaranteeing you will continue to see sizeable increases to your healthcare premiums. What is your financial breaking point? You need to ask yourself how much more you can continue to pay for less coverage than you had before.